A wave of panic selling swept through global precious metal markets in the early hours of January 31st Beijing time. Spot gold prices broke below the $5,000 mark, ultimately closing down 9.52% at $4,865 per ounce, after falling more than 12% at its session low. Spot silver plummeted as much as 36% during the session, closing down 26.9% at $84.7 per ounce. Prices for some domestic brand gold jewelry also fell sharply in sync, with the price per gram dropping over 100 yuan in a single day. On January 31st, Chow Sang Sang's pure gold jewelry was quoted at 1,543 yuan per gram, down 119 yuan from the previous day; Lao Feng Xiang's pure gold jewelry was quoted at 1,498 yuan per gram, down 170 yuan for the day; and Lao Miao Gold's pure gold jewelry was quoted at 1,546 yuan per gram, down 144 yuan from the previous day. On the news front, according to informed sources, advisors to US President Trump have been notified that Trump is expected to nominate Kevin Warsh as Chairman of the Federal Reserve. China International Capital Corporation (CICC) analysis suggests that since a turning point has not yet appeared in Federal Reserve policy and the US economy, the gold bull market may not be over. However, with gold prices having deviated from fundamental indicators and model fits, market volatility may increase significantly, making specific price point predictions highly challenging. CICC forecasts that the US inflation rate will reach a downward inflection point in the second half of 2026, and the Federal Reserve may accelerate interest rate cuts again, providing new support for continued gold price increases.
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